Chartered Has Started Production for AMD ? Industrial Source.

Gamer X

Banned
Feb 11, 2005
769
0
0
From X-bit Labs

Chartered Semiconductor, a contract maker of semiconductors which fabrication process is aligned with Advanced Micro Devices and IBM, has started to produce chips for AMD, a news agency reported. The first shipments are scheduled for July, but the initial shipments will not boost AMD?s production capacity significantly.

?The initial loading for AMD is about 1000 12? wafers per month, on 90nm technology. Chartered started production in May, and shipment is scheduled for July,? an industry source familiar with the situation told Reuters news agency, adding that ?AMD also has an option to increase the order to about 3000 wafers per month?.

Currently AMD produces about 30 thousand 200mm wafers per month on its Fab 30 and has also initiated shipments of chips produced at its Fab 36, which current capacity remains unknown. Provided that the yields are identical, 1 thousand of 300mm (12?) wafers provides the same amount of microprocessors as 2.25 thousand of 200mm wafers, which means that AMD?s production capacity may be boosted by high as 7.5% (real figure will be lower, as Fab 36 capacities were not counted).

But while 7.5% does not sound as a too substantial increase in availability, this will still help AMD to sell more of its chips, which were in tight supply in the past due to high demand. Additionally, as the Fab 36 ramps up and AMD?s orders to Chartered increase, the company will be able to ship significantly higher amount of microprocessors as compared to its abilities today. Recently the company reconfirmed its plans to ship two times more processors in 2008 than it did in 2005.

?The increased capacity provided by Fab 36 will contribute to our goal of doubling total production output from 2005 through 2008. We are positioned better than ever to serve our customers long-term needs and achieve our aggressive growth objectives,? said Dirk Meyer, president and chief operating officer at AMD.

In November, 2004, AMD and Chartered Semiconductor Manufacturing announced they had entered into sourcing and manufacturing technology agreements whereby Chartered will implement under license portions of AMD?s Automated Precision Manufacturing (APM) software suite and become an additional manufacturing source of AMD64 microprocessors. Earlier it was reported based on unofficial claims that Chartered would supply first batch of processors to AMD in June 2006.

Neither AMD, nor Chartered commented on the news-story.
 

F1shF4t

Golden Member
Oct 18, 2005
1,583
1
71
Interesting, but wasnt this how amd started producing x86 cpus, helping Intel produce the 8086 and 8088 processors?
 

Keysplayr

Elite Member
Jan 16, 2003
21,219
54
91
Great. AMD has had at least 4 years to increase their production, but decide to outsource now when Conroe is knocking on AMD's door. Ahh, whatever. What will be will be.
 

Lonyo

Lifer
Aug 10, 2002
21,938
6
81
Originally posted by: keysplayr2003
Great. AMD has had at least 4 years to increase their production, but decide to outsource now when Conroe is knocking on AMD's door. Ahh, whatever. What will be will be.

Fab36 much?
 

imported_Questar

Senior member
Aug 12, 2004
235
0
0
Interesting, but wasnt this how amd started producing x86 cpus, helping Intel produce the 8086 and 8088 processors?

No.

AMD did not help Intel produce processors.

IBM demanded that Intel license the 8088 to a second party to insure supply, before they would use the chip.
 

Griswold

Senior member
Dec 24, 2004
630
0
0
Originally posted by: keysplayr2003
Great. AMD has had at least 4 years to increase their production, but decide to outsource now when Conroe is knocking on AMD's door. Ahh, whatever. What will be will be.

Well you know, building a brandnew fab (fab36) takes a few years. Building your house goes much faster and I'm sure it also doesnt cost 3 billion dollars.

Charteres Semi is just an increase to their capacity. Whats wrong with that? That deal has been signed last year by the way...

 

Keysplayr

Elite Member
Jan 16, 2003
21,219
54
91
Originally posted by: Griswold
Originally posted by: keysplayr2003
Great. AMD has had at least 4 years to increase their production, but decide to outsource now when Conroe is knocking on AMD's door. Ahh, whatever. What will be will be.

Well you know, building a brandnew fab (fab36) takes a few years. Building your house goes much faster and I'm sure it also doesnt cost 3 billion dollars.

Charteres Semi is just an increase to their capacity. Whats wrong with that? That deal has been signed last year by the way...

There is nothing wrong with it. But why did they wait this long to do something like this?
Then we have Lonyo with "Fab 36 much?" which tells me absolutely nothing. AFAIK, fab36 still is not enough even if it is at 150% production or whatever. Anyways, just seems like just the right amount, but waaaaaaaaay late.

 

v8envy

Platinum Member
Sep 7, 2002
2,720
0
0
Timing may be caused by gearing up for a price war. They could be planning on lower per-cpu prices, and thusly want as much volume as they can muster to shore up revenue.

We all know Intel is dumping their Netburst chips on the market in rat horde numbers and at bargain basement prices. For the first time in years Intel may have a better product than AMD, and cheaper. AMD execs would be insane to not plan on a price war. And making up in volume what you lose in margin is how price wars are won.